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US BPO firm plans big expansion in India

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CIOL Bureau
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BANGALORE: US based third party BPO service provider for the healthcare sector, CBay Systems is planning a major ramp up in its Indian operations within the next two years, with an investment of $10 million, according to President, Donald Conover.



Presently housing 1200 employees in India, the medical transcription and information services provider plans to have a total number of 5000 people working for them in centers at Bangalore and Mumbai. Plans of scaling it up to a headcount of 10,000 by the end of 2005 are also on the cards. Its Bangalore facility currently holds 150 employees and a new facility is under construction to meet the additional requirements.



According to Conover, the company’s expansion plans also include acquisitions in India and abroad, for which negotiations are underway. It is also contemplating a complete take over of Arrendale Associates, of which it currently owns 22 per cent. Having already accumulated funds of about $20 million from investors, Cbay aims to gather an amount of $25 million to $150 million in the next eighteen months.



The $33 million company is said to be growing at a rate of 75-80 per cent for the last five years and hopes to touch the $100 million mark by the end of the next calendar year.



With reference to outsourcing of jobs, Conover states that the "US is short of 70,000 graduates for medical transcription, which can be sourced from other countries" like India. But goes on to explain, "It is not cheaper for us to work in India, because when it comes to productivity for every one American job, we need 2.5 Indian jobs. And this is due to the fact that transcription is a fairly new subject to the Indians."



The company also announced the implementation of the Six Sigma training program for its teams, due to start next week.



CIOL Bureau

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